How would you value "no onward chain?"

[FurierTransform]

As say a % of the property value?

I've always seen it as a huge selling point because IME chains are the stuff of nightmares, but not sure how much i'd actually value it by & interested to know what others think!

You can’t value it monetarily I wouldn’t have thought
It just may speed the process up which is in itself helpful

I’m not sure if there is a cash value, but there is an upside for some. Other people not so much.
As with all things property, value is totally subjective.

I think it's quite common at the moment due to demands of getting properties people are going into rented. But unless it's a first time buyer and a chain less purchase there will be a chain somewhere.

I would value it ahead of others in that I would be more likely to opt for one with no onward chain. I wouldn't put a cash value on it though.

It's totally dependent on the situation.

If you want to move fast - it has a high value. If you're not bothered and happy to wait out various issues with a chain, it has almost no value.

@FurierTransform

As say a % of the property value?

I've always seen it as a huge selling point because IME chains are the stuff of nightmares, but not sure how much i'd actually value it by & interested to know what others think!

If you're trying to sell your house and think that you'll be able to add a % on to your guide price to reflect the no chain, I wouldn't bother.

We’re buying from someone who was supposed to be chain free; but now isn’t, and our buyer is chain free but has the slowest conveyancers known to man, and the rest of the chain has been ready for three months, and our buyer still isn’t. It doesn’t have a monetary value. I wouldn’t pay any more for it, it doesn’t even mean things will move faster, in my experience.

@FurierTransform

As say a % of the property value?

I've always seen it as a huge selling point because IME chains are the stuff of nightmares, but not sure how much i'd actually value it by & interested to know what others think!

It's a selling point. The monetary value of not being in a chain might be small. For example if you have incurred expenses on a property but it falls through, the expenses incurred are probably only a few thousand. Multiply those expenses by the probability of losing a property due a chain falling through to obtain the cost. But there are also non-monetary costs (would the disappointment of delaying your move be significant? Do you worry you couldn't find another suitable one?)

But the monetary value of not being in a chain might be enormous.
If you are upsizing and prices increase, or downsizing and prices decrease, that could easily cost many tens of thousands.
For example you are selling for £500k and buying for £1m. Chain falls through and you start again, this time selling for £550k and buying for £1.1m. This has cost you £60k (50k higher net price, plus 10k extra stamp duty) on top of the incurred expenses.

If you are definitely selling without a chain, there is no reason to attempt to place a value on it though. But it's sensible to list slightly higher as you may have more interest (people who are keen to avoid chains) than other properties, hence more competition and likely higher offers.

If there were two houses we fancied equally we'd always go for the chain free house. I think this matters more on estate houses than say unique rural properties where people are willing to do all sorts to secure them.

I remember having a cash buyer & a vendor with no onward chain. Heaven!
The solicitors still dragged their bloody feet though so it took about 2 months...

It doesn't have a value. It just makes a house more attractive as there's a reduced chance of delays or collapse of the chain. It may make a particular property more attractive (due to no chain) despite being less attractive for other reasons (price or condition or location or whatever).

I did until the person I bought this house off lied by saying there were going into rental, they weren't.

I think it can make somewhere more appealing, we have already completed our sale on our flat so if we could find somewhere chain free to buy it could be a very simple transaction. People were particularly keen on finding somewhere chain free to increase their chances of meeting the stamp duty deadline I think.

But it can also ring alarm bells - there is always the risk that the seller will pull out if they have no skin in the game if you know what I mean? You hear of people who are going to sell and move into rental but change their minds and there is a chain in the end. Also a chance that someone selling chain free will have their heads turned by a higher offer down the line, without their own chain to try to keep together.

So...could be good but also trust no-one!

Our most recent purchase was 'chain free' where the vendor was going into rented but it turned out that doing that isn't as easy as you think it is in some situations. Rented properties can be very difficult if you don't want to sign up to one until you have exchanged contracts on your sale, or if you are moving to a very sought after area where they can have their pick of tenants and you have no job. It worked out in the end, but not as easy as just 'move to rented' sounds on paper.

I think the value in no onward chain is that your sale/purchase is not likely to be derailed by the politics of having to satisfy and wait for all parties in the chain to be in a position to exchange contracts and move on the same day.
In terms of financial value its hard to quantify except that it reduces professional fees and faffing about. Personally I would accept a reduced offer on a property from someone who is not in a chain and in a good position to purchase.
I have heard of several moving day disasters pulled by one of those involved in the chain pulling stunts and coming up short of the asking price just to see if their antics could get a last minute discount whilst all parties were at their most vunerable. As it happened the person highest up the chain buying the +£1M house enquired what the delay was with the funds transferring in the chain. He paid the £10k that was missing from the asking price to get everything moving. The cheeky sod who was £10k short was the talk of the village for some time, and turned out to be a bit of a serial boom and bankrupt sales company owner!

~I wouldn't. we were told there was no onward chain and then the day we were meant to exchange she said she'd changed her mind and was now planning to buy so she'd exchange but she wanted three months completion time.....was very pissed off

It is a nice to have but wouldn't be a dealbreaker. I wouldn't base a decision on it. Better to wait longer for the right house than get the wrong one quicker.

@OneRingToRuleThemAll

I would value it ahead of others in that I would be more likely to opt for one with no onward chain. I wouldn't put a cash value on it though.

^ this for me. In my case, I paid an additional about 1-3% to secure the property I wanted chain free, but this was partly driven by wanting to get the stamp duty break

Without that time pressure, I’m not sure I would have paid more

I say 1-3 % as I’m not sure what the owners would have accepted, my offer was under asking price

I would not pay more for a chain-free property. As many threads on here attest, unless the vendor could prove that they were going into rented, it's caveat emptor (except for probate/owner going into care home, obvs) and it just smacks of greed to me. I am chain free and a more attractive buyer as a result, why should I pay more because the vendor [allegedly] is?

We recently sold our large London flat to first time buyers. We moved country so went to rental. Offer to completion took 8 weeks, it was very straightforward (though still stressful). We moved 2 weeks after the offer came in so it was very clear we were serious! We took the asking price offer from the first time buyers rather than £10K over asking from the couple who needed to each sell a smaller place to afford it. I don’t think it’s a monetary value as much as a selling point though.